What is Staking? Complete Guide to Cellframe Staking Mechanism for Developers

#blockchain #staking #cellframe #cryptocurrency

You've likely heard the term "staking". But what does it actually mean?

Staking is a mechanism of locking crypto assets in a blockchain network for a specified period, which allows you to earn passive income. Additionally, under certain conditions, staking grants users the right to obtain validator status in the network.

An individual locks their coins in a stake and receives rewards simply for doing so — an Annual Percentage Yield (APY) that can be compared to bank deposit interest rates.

However, holding a stake of a certain amount also grants the right to become a network validator, enabling users to earn additional income through network rewards.

Staking helps maintain blockchain security and stability, while you earn passive income.

Now let's discuss how staking works specifically in Cellframe.

Cellframe offers a genuine way to earn from your tokens. It's secure and efficient, and you maintain full control over your funds at all times.

You can immediately withdraw tokens in the CF-20 standard if you purchase them from an exchange that supports Cellframe protocol withdrawals.

Alternatively, follow this process:

Install Cellframe Wallet and create a wallet
Fund it with CELL tokens using the Cellframe Bridge
Navigate to the staking platform
Select solo staking and follow the instructions

Token staking is available on the Cellframe staking platform! Join us!

Glossary of Cellframe Staking Terms

Staking

A mechanism of locking crypto assets in a blockchain network for a specified period to earn passive income (Annual Percentage Yield) and potentially participate in network validation.

Annual Percentage Yield (APY)

The yearly percentage income earned from participating in staking. In the Cellframe network, it amounts to 6 percent for solo staking.

Validator

A network participant who has the right to validate transactions and create new blocks. In Cellframe, validator status is granted when holding a stake of a certain amount and provides additional income in the form of network rewards.

Solo Staking

A type of staking in the Cellframe network where users independently place tokens and receive rewards without participating in pools.

Cellframe Bridge

A tool for transferring CELL tokens from other networks to the native Cellframe network for subsequent staking.

Frequently Asked Questions about Cellframe Staking

What is staking in Cellframe and what benefits does it provide?

Staking in Cellframe involves locking CELL tokens in the network to earn passive income and gain the right to participate in block validation with additional network rewards. This helps maintain blockchain security and stability while generating passive income for participants.

How do I start staking in Cellframe?

Install Cellframe Wallet and create a wallet. Fund it with CELL tokens via the Cellframe Bridge. Navigate to the staking platform and select solo staking, following the provided instructions to complete the process.

What is a validator and how can I become one through staking?

A validator is a network participant who validates transactions and creates blocks. In Cellframe, holding a stake of a certain amount grants validator status and enables you to earn additional income through network rewards for maintaining network operations.

Is staking in Cellframe secure?

Yes, staking is secure and efficient. You always maintain control over your funds, which are locked in a network smart contract under your management. The platform employs post-quantum cryptographic algorithms for enhanced security.